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Inviting investments to the Heart of India

Completing its third year, Madhya Pradesh Travel Mart 2016 focused on inviting investments from the private sector for the tourism and hospitality industry in the state By Mohit Rathod

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Shivraj Singh Chouhan

The significance of the tourism and hospitality industry in economic growth has been widely recognised by various state governments. Whilst acknowledging the industry’s contribution in terms of creation of employment, generating revenues, improving the state’s national and global image and more, public sector undertakings have been actively welcoming stakeholders from the private sector, in order to attract investments and facilitate better infrastructure, which eventually result in higher tourist footfalls.

In the wake of the existing environment of the tourism industry, the recently held Madhya Pradesh Travel Mart 2016 shed light on the importance of private sector investments and the PPP model. The travel trade show, which marked its third edition this year, was held in the state capital Bhopal, at Hotel Lake View Ashok, from October 15 to 16 and saw participation of 28 countries, 175 domestic buyers, 70 international buyers and over 50 exhibitors. The event was inaugurated by Madhya Pradesh CM Shivraj Singh Chouhan, state tourism minister Surendra Patwa and officials of Madhya Pradesh State Tourism Development Corporation (MPSTDC), including Tapan Bhowmik, chairman; Hari Ranjan Rao, tourism secretary and managing director, MPSTDC and Tanvi Sundriyal, additional managing director, among other dignitaries.

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Addressing the inaugural gathering, Chouhan revealed the state government’s plan to develop Madhya Pradesh as India’s eco tourism and adventure tourism hub. He indicated this will be done by attracting investments from the private sector. Chauhan said, “Madhya Pradesh is a unique state and has potential across diverse avenues. The state has been growing at a rate of over 10 per cent for the last eight years. We have identified tourism as one of the major industries in the state and want to put the private sector ahead to develop tourism here.”

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The central government has granted Rs 275 crore to Madhya Pradesh for developing tourism. The state received about eight crore tourist arrivals last year. “MP has gone forward a lot and investors have realised this and are planning to invest in the state’s tourism opportunities. We are working on various avenues to ensure sustainable development of tourism in the state,” commented Patwa.

Focal point

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Hari Ranjan Rao

The state is leveraging upon factors such as political and financial stability, pricing parity and process reforms to attract tourism and hospitality players to provide a fillip to the industry. Rao mentioned about the recently introduced tourism policy of Madhya Pradesh, terming it “investor-friendly.” In terms of MICE offerings, MPSTDC will be converting the renowned Minto Hall into a heritage
convention centre.

Rao added, “Private sector has been contributing a lot to the growth of tourism and infrastructure in the state. Water tourism is the recent addition to the state’s tourism offerings.” MPSTDC is also strengthening its efforts to market the state as a destination in international markets, as the authority has hosted a significant number of international partners and media representatives in the past.

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Industry speak

Bharat Malkani, president, Federation of Hotel & Restaurant Associations of India (FHRAI), opined, “Madhya Pradesh is highly innovative and proactive and has been taking pro-industry initiatives. As a hotelier, I have never seen any government as proactive as Madhya Pradesh government. The chief minister’s presence at the event and the formation of a special cabinet shows the government’s good intent to become one of the top destinations. I am very impressed and I can see many investments flowing into the state.” In his interaction with Patwa, Malkani suggested a model, wherein there is a single-window clearances for all projects. He also indicated the importance of leveraging the vast presence of lakes in the state, as a tourism product. One of the possibilities, Malkani suggested, was the idea of seaplane operations, whilst adopting a industry-friendly tax structure.

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Asheesh Choudary, president, India Buggy, commented, “The trade show was well organised. There was a lot of improvement compared to last year. Madhya Pradesh has a lot of potential and such events will help  boost tourism in the state.”

Whilst the state tourism stakeholders lauded MPSTDC’s activeness in developing tourism in the state, some also felt that the government needed to do it more efficiently, particularly in wildlife tourism, which is one of the core marketing elements for tourism in MP. Shivang Patel, director, Camp Ananya, stated, “This was the first time we participated here and I found it amazing. I look forward to participating in all the coming editions of MP Travel Mart. This is a good place to meet the right people from the industry. Tiger is the pride of the state and we, along with the authorities, must ensure that they are protected and wildlife and ecotourism is promoted. However, there is a lack of open platform discussions. As part of the industry, we have our own problems and I urge the government to facilitate more discussions where we can place our hurdles, and work in co-ordination with the authorities to find a viable solution.”

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Alongside the trade show, the first day also witnessed MP State Tourism Awards, which rewarded 39 top performers in the industry across 22 categories such as Best Tour Operator, Best Tourist Transport Operator, Best Adventure Tour Operator, Best Hotel Chain, Best Heritage Hotel, Best Homestay, Best Responsible Tourism Project, Best Chef, among others.